The laundry industry is definitely booming. But while everyone is excited to open a new laundromat or try the new service provider in the neighborhood, laundry operations (at a profit) can be quite tricky.
Over the last 46 years in the Philippines’ cleaning and laundry industry, I have seen many businesses cease and hotels/hospitals/companies close down their on-premise laundry after failing to sustain operations. Their solution is often to outsource to cut back on cost. But as someone who came from both service provider (plant manager of one of the biggest laundry service providers in the country) and on-premise laundry (consultant for hotel, hospital and manufacturing OPLs) – I would say that it boils down to understanding the laundry process, maintaining quality (read: Total Quality Management) and knowing the signs before your laundry fails.
I list below 7 general symptoms that require your attention.
- A lot re-wash
Managers and executives in hotels, hospitals and companies that require laundry services do not often realize the huge impact of re-wash on cost. Re-wash repeats the entire laundry process due to failure in providing quality results. The normal re-wash rate is 2% to 3% daily. If you’re beyond this, your utility costs double as you have to repeat the same process for the same items. In laundry, doing it right the first time is crucial.
- Excessive cost
There are cost-related events that cannot be controlled such as rising power and water costs and force majeures. But in general, when costs rise faster than the rate of production, it is important to check what inefficiencies and challenges exist. Are these utilities? Can manpower be streamlined?
- Machine failure
A machine that doesn’t run efficiently (or one that breaks down) is lost opportunity for the business to earn. One of the worst things that can happen is a flatwork ironer breakdown, which can spell chaos for the laundry staff.
- Delays in delivery
For commercial laundry companies, failure to deliver on-time can break their client’s business – especially if the customer is a hotel with very few linen par stcck. Systematic delays are a cause of concern for the service provider.
- Damages, losses and mix up
One by one, your linen inventory decreases due to pilferage, or perhaps your linen’s life shortens due to bad wash, resulting to degradation. Bad wash and incorrect usage can negatively affect lifespan – for instance, using guest towels to scrub areas in the bathroom where strong chemicals are applied will eventually damage the linen.
- Graying of whites
Gradually, your linen loses its white luster and fails to meet the whiteness test.
- Customer complaints
The most obvious sign that something is wrong is via customer feedback – especially from loyal clients. For hotels, failing laundry services (whether OPL or outsourced) often lead to delays in releasing a hotel room (e.g. housekeeping doesn’t have fresh linen to replenish) or smell and stains on the towel (need for re-wash).